Helping Students Bridge the Gap: HESC President's Testimony Highlights First New State Initiative in 35 Years

ALBANY, NY (01/15/2009)(readMedia)-- Gov. David Paterson's decisive action to help students bridge the gap between college expenses and federal and state financial aid will help keep the doors open to higher education for all New Yorkers, the president of New York Higher Education Services Corporation (HESC) testified in Albany today.

HESC President James C. Ross urged legislators to support the New York Higher Education Loan Program (NYHELPs), the first new student aid initiative to help expand access to college in New York in 35 years.

NYHELPs will provide New York State students attending New York colleges and their parents with access to low-cost education loans not currently available to them in the private loan market. A critical component of the program is a $50 million State investment. This support will have the impact of providing lower cost loans to students, estimated at between 7.5 and 8.5 percent, encouraging lender capital investment in the program, and leveraging this investment to provide between $600 and $700 million in loans.

President Ross gave concrete examples of the benefits students receive from NYHELPs. "A student borrowing $10,000 a year for four years would save an estimated $51,200 over the life of the loans, when compared with a typical 16.5 percent private loan. If 40,000 students borrowed through NYHELPs annually, the cumulative estimated savings would be $2 billion."

The testimony closed with an urgent appeal to support this important student aid initiative put forward by Governor Paterson. "His father, Basil, championed a number of higher education programs while he served in the State Senate. Most notable was his fight to establish the SEEK program which continues today to serve City University students with special needs. Your approval of the NYHELPs program will continue the Paterson tradition of supporting students throughout the State to obtain a college degree," Ross said.

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